Abstract

http://ssrn.com/abstract=1318107
 
 

Citations



 


 



Patterns of Rainfall Insurance Participation in Rural India


Xavier Giné


World Bank - Development Research Group (DECRG)

Robert M. Townsend


MIT - Department of Economics

James I. Vickery


Federal Reserve Bank of New York

2008

The World Bank Economic Review, Vol. 22, No. 3, pp. 539-566, 2008

Abstract:     
Take-up of an innovative rainfall insurance policy offered to smallholder farmers in rural India decreases with basis risk between insurance payouts and income fluctuations, increases with household wealth, and decreases with binding credit constraints. These results are consistent with the predictions of a simple neoclassical model with borrowing constraints. Other patterns are less consistent with the benchmark model. For example, participation in village networks and measures of familiarity with the insurance vendor are strongly correlated with insurance take-up decisions, and risk-averse households are less, not more, likely to purchase insurance. These results may reflect household uncertainty about the product, given their limited experience with it.

Keywords: O10, O16, G2, G22

Accepted Paper Series





Not Available For Download

Date posted: December 31, 2008  

Suggested Citation

Giné, Xavier and Townsend, Robert M. and Vickery, James I., Patterns of Rainfall Insurance Participation in Rural India (2008). The World Bank Economic Review, Vol. 22, Issue 3, pp. 539-566, 2008. Available at SSRN: http://ssrn.com/abstract=1318107 or http://dx.doi.org/lhn015

Contact Information

Xavier Gine (Contact Author)
World Bank - Development Research Group (DECRG) ( email )
1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
HOME PAGE: https://sites.google.com/site/decrgxaviergine/
Robert M. Townsend
MIT - Department of Economics ( email )
Bldg. E52-252c
50 Memorial Drive
Cambridge, MA 02142
United States
617-452-3722 (Phone)
617-253-1330 (Fax)
James Ian Vickery
Federal Reserve Bank of New York ( email )
33 Liberty Street
New York, NY 10045
United States
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